NEW DELHI: Equity mutual funds witnessed a remarkable surge in inflows to nearly Rs 4 lakh crore in 2024, more than double the amount recorded in the preceding year, reflecting strong investor confidence and a continued shift towards long-term investing, particularly through Systematic Investment Plans (SIPs).Despite the strong performance in 2024, the outlook for 2025 appears cautious. The mutual fund industry has started to see a slowdown in equity fund flows since early Dec, a trend attributed to increased market volatility, Santosh Joseph, co-founder and CEO of Germinate Investor Services, said.Historically, inflows into equity funds are closely tied to market performance, and periods of market uncertainty often result in subdued investor activity. “As a result, 2025 may witness muted activity in terms of new fund launches and equity fund mobilisation especially as market volatility persists,” Joseph added. However, long-term investors may continue to stay the course, benefiting from the wealth creation potential of equity markets when conditions stabilise, said.In 2024, the total inflow into equity and equity-oriented schemes stood at Rs 3.9 lakh crore, compared to Rs 1.6 lakh crore in 2023, according to data from the Association of Mutual Funds in India (AMFI). agencies